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North Myrtle Beach accepts portion of $60 million short-term rental settlement; city to consult outside counsel on reimbursements
Summary
City council unanimously accepted its share of a multi-jurisdiction settlement with Airbnb and authorized the interim city manager to sign settlement and fee-agreement documents; council said staff will ask outside counsel whether individual hosts can seek reimbursement.
The North Myrtle Beach City Council voted unanimously to accept the municipality's share of a multi-city settlement with Airbnb and authorized the interim city manager to sign the settlement documents and a replacement fee agreement with the city's special litigation counsel.
City staff said Airbnb has agreed to settle litigation with several South Carolina municipalities for a total of $60,000,000 that will be divided among the participating plaintiffs. Council was told the settlement covers multiple platforms named in the suit and follows a 2021 filing that has involved Charleston-area governments and other coastal and inland towns.
Assistant or outside counsel (identified in the meeting as Chris) explained the $60 million overall settlement has been allocated across the plaintiff cities and counties; he said the city’s share “after payment of attorney’s fees and expenses” was stated during the meeting but the transcripted wording was unclear. The council voted to accept the settlement and to authorize the interim city manager to sign documents needed to implement it.
During public comment, a North Myrtle Beach property owner asked whether hosts who already paid accommodations taxes directly to the city while Airbnb also collected and remitted such taxes could seek reimbursement. Council members and staff said they have received similar questions and that the city cannot yet provide a universal answer. City counsel said he would consult outside counsel and report back to the resident (referred to in the record as “Ms. Puffer”) about whether individual reimbursements are feasible and how verification might work.
Council members noted practical complications in verifying what Airbnb collected and remitted for particular listings; staff said the city will conduct due diligence with outside counsel before committing to a reimbursement approach. No specific use of the city’s settlement funds was announced.
The resolution authorizing acceptance and signatures passed on a unanimous voice vote.
Ending: City staff said they will follow up with outside counsel and report back to council and the resident who requested clarification. No timeline for distribution or allocation of the city’s share was provided at the meeting.
